Tuesday, September 6, 2016

Australia’s central bank leaves interest rates unchanged

US stocks expected to open higher after Labor Day holiday
US stock markets will open today after staying closed for the Labor Day holiday on Monday. Stocks finished higher on Friday after the nonfarm payrolls report showed fewer than expected jobs were added to the economy in August. The dollar slipped following a small gain after nonfarm payrolls release.
The live dollar index data show the ICE US Dollar Index, a measure of the dollar’s value against a basket of six major currencies, ended 0.08% lower at 95.748. Stock index futures are rising currently consistent with diminished likelihood of a rate hike at Fed’s September meeting. Today at 15:45 CET final August Services and Composite PMIs will be released. The tentative outlook is positive for dollar. At 16:00 CET ISM Non-Manufacturing PMI for August and the international Business Daily Economic Optimism index will be published, the outlook is neutral.
European stocks closed slightly higher on Monday
European stocks closed slightly higher on Monday led by commodity shares as oil rose and China’s private Services PMI improved. The euro weakened and the Pound edged higher against the dollar after UK Services PMI posted its largest monthly gain in two decades. The Stoxx Europe 600 closed 0.1% higher.
Oil companies Statoil rallied 2.3% and Royal Dutch Shell closed up 1%. ArcelorMittal led miners higher with Anglo American and Fresnillo up 0.7% and 0.3% respectively. Swiss software maker Temenos was the best performer jumping 7.6% after Credit Suisse analysts raised their rating for the company to outperform from neutral. Shares of French telecom company SFR Group rallied 6% after Altice offered to pay more than 2 billion euros ($2.24 billion) to buy out minority shares in the company that it doesn’t own already. Germany’s DAX 30 slipped 0.1% to 10672.22 after the final reading of German Services PMI for August fell unexpectedly to 51.7 from 53.3 in July. France’s CAC 40 was roughly unchanged at 4541.08 and the UK’s FTSE 100 closed down 0.2% at 6879.42 as financial and consumer-related stocks fell. Bank stocks were led by Royal Bank of Scotland and Lloyds Banking Group which slumped 3.5% and 2.1% respectively after Deutsche Bank cut its rating on RBS to sell from hold, and reduced Lloyds rating to hold from buy. Today at 10:10 CET August Retail PMI will be released in Germany. At 11:00 CET revised second quarter GDP will be published in euro-zone, the outlook is neutral for euro.
Asian stocks are rising on Tuesday
Asian stocks are rising today with Chinese shares gaining as investors continue search for higher yield. Last week Chinese investors spent 17.7 billion yuan ($2.65 billion) buying Hong Kong stocks under the Shanghai-Hong Kong Stock Connect, the biggest weekly inflows since last April. The Shanghai Composite Index and Hong Kong’s Hang Seng index are 0.4% higher. Australia’s All Ordinaries Index fell 0.25% after the Reserve Bank of Australia kept the cash rate unchanged at a record low 1.5%. Nikkei ended 0.3% higher today at 17081.98 as yen’s rise against the dollar slowed.
Oil futures prices are edging higher on Tuesday
Oil futures prices are extending gains today after Russia and Saudi Arabia agreed to cooperate on stabilizing the oil market.The world’s two largest oil producers said they will set up a working group to monitor the oil market and come up with recommendations to promote stability. November Brent crude rose 1.7% to $46.83 a barrel on London’s ICE Futures exchange on Monday.

No comments:

Post a Comment